Selasa, 17 Juni 2008

The Dow Indexes

by Viktor Ka

Dow Jones was founded by Charles Henry Dow, Edward Davis Jones and Charles Milford Bergstresser on Wall Street in New York. At that time the company was called Dow, Jones & Company and the company produced and delivered daily news bulletins called to subscribers in the Wall Street area.

In 1884 Charles H. Dow introduced the first Dow Jones stock index which was based on the nine railroads and which later became known as Dow Jones Transport index (DJT index). In 1896 the second, Dow Jones Industrials Average index (DJI Index), was started to be tracked. Later at the beginning of the 20th century, the Dow Jones Utilities index (DJU Index) was set and introduced to the stock market world.

The DJI, DJT and DJU indexes are selected, maintained and reviewed by editors of The Wall Street Journal. A stock typically is selected only if it is one of the biggest and actively traded companies on the U.S Stock Market.
The Dow Jones averages are price weighted therefore affected only by changes in the stocks' prices, in contrast with other types of indexes' weightings where the index price is affected by price changes and changes in the number of shares outstanding.

The Dow Jones Transport Index (DJT) Index

Even the Dow Jones Industrial Average is one of the best-known U.S. stock index, the Dow Jones Transportation Average has an honour to be one of the oldest stock market indexes.

The DJT, assembled in 1884 by was composed of nine railroads, including the New York Central and Union Pacific, and two non-rails, Pacific Mail Steamship and Western Union.

Over the decades, railroads have been joined in the average by the likes of Delta Air Lines, Federal Express and Ryder System.

The Dow Jones Industrial Average (DJI) Index

Charles H. Dow unveiled his industrial stock average on May 26, 1896. At that time the Dow Jones Industrials comprises 11 stocks, most of which were railroad companies.

Until 1896 the Dow index was published irregularly. However, on Oct. 7, 1896 the Dow Jones Industrials index was expended to 20 stocks and started to be published on a daily basis in The Wall Street Journal. In 1928 the number of stocks included into the Dow index was increased to 30, where it remains.

The 30 stocks in the Dow Jones Industrial Average Index are selected as the biggest publicly traded U.S. companies in their industries. At the end of 1999, these 30 stocks from the DJI index covered about 28 percent of all U.S. stocks.

The Dow Jones Industrial Average Index is the most-analyzed index in the world.

The Dow Jones Utilities (DJU) Index

The Dow Jones Utility average index was introduced in January 1929 and is the youngest of the three Dow Jones Averages.

The utility average index started with 18 stocks. On July 1, 1929, the number the number of DJU stocks was increased to 20, yet, on June 2, 1938 this number was reduced to 15 stocks, where it remains ever since.

About the Author

Our Options Trading signals based on the on proprietary advance decline and volume trading systems for NASDAQ 100, S&P 500 and other indexes.

Get the Best CD Rates with a CD Ladder

by Rob W

CDs, short for Certificates of Deposit, are considered by many to be a very stable way to invest your money. Most certificates of deposit are offered by trustworthy banks, and in the United States most CDs are insured in accordance with FDIC requirements. Sounds great, yet, one of the less attractive qualities of CDs is that your money is committed to the bank for a set length of time, known as the "term". If an investor tries to withdraw their funds before the term is over, they can be required to pay substantial penalties for the early withdrawal. While one might be inclined to choose shorter term CDs, you will often see 4 year or 5 year CDs (sometimes longer) with the best CD rates. So how does one achieve the highest CD rates found in long-term CDs while retaining some flexibility in case you need to access your money sooner?

The answer to this question is to use a CD Ladder. The strategy behind the Laddering of Certificates of Deposit is, put in simple terms, simply dividing the portion of your portfolio slated for CDs among several CDs of differing term lengths.

As an example, if you had $45,000 to invest in certificates of deposit, and you wanted to be sure that you were never more than a year away from accessing at least $15,000, then you could buy three $15,000 CDs of different term lengths. In that case, you could by one CD with a one year term, one CD with a two year term, and one CD with a three year term.

Staggering the terms means that you are always within a year of grabbing a "rung" on the ladder. Therefore, when the one year term CD is expiring, if you are not yet ready to withdraw your funds you can instead buy a 3 year certificate of deposit and still have your CDs staggered in the same manner - because your 2 year CD would now only have one year left, and your 3 year CD would now only have two years left. You can reconsider your needs each time a certificate of deposit comes up for renewal. A further important aspect of CD Laddering is that it prevents all of your money from being locked into one interest rate, and instead allows you to reinvest each terminating CD at higher rates if the market rates are on the rise.

This laddering strategy can be adjusted to fit the specific amount of money that you want to invest and the length of time that you are comfortable being unable to access a portion of your money. So, if the stability of a certificate of deposit and the flexibility of staggered terms is appealing to you, be sure to check with your financial advisor to see if a CD Ladder is the right investment for you.

The best CD rates can be found at: Best CD Rates

Also, be sure to see the latest high interest Washington Mutual CD Rates

About the Author

Rob W blogs about CD rates at www.BestCdRatesInfo.com.

Managing Risk While Investing

by David Brishen

Once you have made the very important decision that you need to invest your money as a vital part of fulfilling your dreams, the next step is to talk to a financial professional getting you a risk assessment so that you know your personal risk tolerance.

Assessing your risk means figuring out how much risk you can take in your investment portfolio without losing sleep, being always stressed out, or being ever fearful that you are going to lose all of your money.

The fact of the matter is that when it comes to investing, the greater your level of risk, the greater your potential rewards and the faster you can anticipate receiving those rewards. It is an investment basic that taking on additional risk is the way of leveraging a higher amount of energy for the creation of wealth.

However, the basic trick is to take calculated risks. Just as you need to think about where you want to go and how you want to get there before you pull out of your driveway in your car, so you have to think about what level and kind of risk you are willing and emotionally able to take before you buy stocks or other investment vehicles.

If you are new to investing, you will want to meet with a financial professional who can ask you the right questions and give you the right kind of feedback about your responses in order to guide you into a portfolio of investments that is right for you.

Balancing your risks with a certain measure of security and making sure that your investment portfolio reflects who you are, not who your advisor or parents or spouse or the guru you heard about on TV are, is a financial adviser's primary responsibility. Experienced financial professionals have seen all kinds of economic situations, good and bad, that might provoke you into doing the wrong thing with your money -- either out of too much exuberance or too much fear -- and costing you dearly. Their advice can keep you from overreacting when cooler heads need to prevail.

Yes, one of the most important investing basics is that you must always keep a cool head. And one of the most important ways of keeping a cool head with your investing is to know your personal risk tolerance and make sure you only take calculated risks, not blind risks.

About the Author

David Brishen is a private investor who writes about investment fundamentals for the newcomer as well as the insider. To learn more about Investing Basics please visit the author's website.

Why are investors turning to Solar?

by Chris Davidson

In the current world climate it can be hard being an investor. With financial markets in meltdown and the huge boom in property in slowdown, investors are wondering where the best place is to not only secure their money, but also to grow it too.

There is one particular investment that promises much right now; renewable solar energy. In particular the Solar market which captures UV light (known as photovoltaic) as opposed to direct sunlight has seen huge growth in the last 3-5 years. An easy example of this technology is the strip on your calculator, which uses UV light to power up. So just why are investors excited by this sector?

Energy production price versus Oil - firstly, solar has never been popular because it has been too expensive to produce compared to the price of oil. Russell Hasan from Altenews.com, in his "research report on Solar investment: the Dawn of Solar Power", states that the breakeven point with Oil is around the $50 a barrel level, which means in today's marketplace Solar is now becoming a really viable option. Governments historically have been slow to subsidise, but a number of markets are now starting to grow dramatically.

Feed-in tariff law - Before Solar started becoming more competitive, a number of developed nations took the lead in providing subsidies for the solar industry. The 3 global market leaders are Japan, Germany and the US, with Germany in particular bringing in a law in 2004 which interested investors greatly. The Act states that any excess renewable energy that is produced must be bought back by the utilities at a set rate per Kilowatt. Solar gets a preferential rate of 47-57c/Kilowatt compared with any other source, such as wind, depending on the type of installation. As a result, it means that the owner of the solar energy generating system can create an income stream whilst also helping the environment. Similar laws are in place in other EU countries such as France, Spain, Italy and Greece.

Solar is a growth industry - the Solar Energy industry is one of the best performing industries of today. According to Solar Buzz, a solar research group:

* Demand for solar has grown at 30% annually for the last 15 years * Solar PV installations rose by approx. 62% in 2007 compared to the previous year * Solar prices have fallen 4% on average annually over the last 15years

The reasons for growth as many and varied and will be covered at length in a further article.

High yielding - one of the main reasons investors have started looking at solar are the high yields on offer. It is difficult to predict from each installation how much income can be generated but banks who lend to buyers are generally looking for a minimum 8-10% yield before approval. Depending on the amount of sunlight, conservatively projected gross yields in the region of 10-15% are easily achievable.

High level of financing - because these investments are so secure, as discussed below, banks are prepared to lend to a high level, particularly in Germany. Anywhere in the region of 85%-90% LTV is being offered, which when compared to the average 50% LTV on property, makes interesting reading.

Immediate income - one of the great bonuses to Solar investing is the investor can generate income pretty much straight away. In the case that rooftop space is being sourced from them, a typical installation and finance approval period is in the region of 12 to16 weeks. Therefore, provided that rooftop space is available, a return on investment begins very quickly and reassures investors as to their decision. If this is compared to off-plan property for example, the build period can be as much as 2 to 3 years, which means it takes a lot longer for investors to start generating income and see whether the investment is working or not.

Security - in an age where investors are after security of their funds as much as growth rates, solar investments can be an extremely secure way to invest your money. In Germany, solar investments come with a 20 year government contract to buy back the excess you produce, and schemes along similar lines are popping up in France, Italy, Greece, Spain to name a few. Your installation can be registered independently of the property at the local land registry so if the property changes hands, the panelling system on the roof doesn't.

Many other traditional investments are not working - Historically, shares and property have been the main investment vehicles available, and right now it seems that these routes to profit are not working.

With a lack of equity in the marketplace and the subsequent rise in commodity prices, the financial markets have become an even more volatile place to invest money. There is no doubt that huge profits can be made, particularly in the commodity sector, but the risks are far higher. In the world of property investment, there has been a huge global demand, and therefore boom for all types of investment products, from holiday homes to City buy to lets, from apart-hotels to land sub-division projects. Again there is little doubt that some of these products will pay off, but with over-supply common in many areas, returns will be seen in the long-run provided investors have chosen the right location and price point in the first place.

In conclusion then, investors will be hearing much more about solar energy as an investment vehicle in the coming months and years. It is becoming cheaper to produce and has an attractive income stream, is government and bank backed which means it is secure, and it give investors peace of mind that they are contributing to the global need for energy independence from oil and long term security. Future articles will delve into this sector in more depth to provide investors with as much useful information as possible. From there we can all decide whether this is not only the next growth sector, but also if it is one of the answers to the human race's pressing energy concerns.

Chris Davidson http://www.discoverandinvest.com

About the Author

Chris Davidson has worked in a variety of investment industries including football and in particular real estate. Over the last 10 years he has renovated properties in London and sourced city, tourist and lands subdivision projects in over 20 countries worldwide for investment clients at E-Quity.com. Chris' skills in researching, client relations and packaging means he able to find the right opportunities that the market place desires. Chr

Trading Forex- dollar and inflation.

by Mike P. Kulej

For a number of years US economy has enjoyed a relatively low inflation rate. According to official statements, annualized inflation over last decade or so has been in very low single digits. Depending on the source and method of calculation, the rate has been about 2. That is despite massive infusion of funds into the economy in the form of very low interest rates.

That course of action has been long supported by US financial authorities, the FED. For years the central bank has been concerned with growth, doing everything it could to fight economic slow down and stagnation. It was done in the form of cutting interest rates and seemingly endless liquidity increase. Let's not forget about lending hand in order to bail out large financial institutions from the masses their questionable practises created. In fact, month after month we have been treated to speeches that inflation is under control and not a threat. Until now.

Published inflation figures pertain to the so called "core inflation", compilation of prices on consumer goods, which excludes food and energy. Runaway cost increases in oil/gas and main food commodities are finally being reflected in the number, as their effects trickle down to other areas of consumer goods. Some of the newly released figures are stunning-soaring energy costs pushed inflation up in May at the fastest pace in six months, according to data released Friday by the U.S. Labor Department. Food prices had the biggest one-month leap in 18 years in April. That's something.

Higher energy and commodity prices also fuel inflation pressures in other parts of the world. They are being acutely felt in Asia in particular, as the region continues to function as a commodity importer/manufactured goods exporter. One way countries can offset such inflationary pressures is to allow their currencies to appreciate more rapidly. All of a sudden, within a couple of weeks, the once neglected subject of inflation has catapulted itself onto front pages.

As of this writing in mid June, finance ministers of the of the Group of Eight industrialized countries (G-8) are holding a meeting in Osaka, Japan. Main subject have been inflation causing soaring oil and food prices, which are emerging as serious threats to global economic growth. The ministers are vowing to work together to address the problem. They urged oil-producing nations to increase production to help stabilize the spike in oil prices, and called for aid to address a looming food crisis in developing nations.

In response, Saudi Arabia pledged to increase its daily output by additional 500,000 barrels a day. This is surely to stretch their capacity to an absolute maximum, but in opinions of many this decision should calm energy markets, which, by the way, do not have a shortage of supplies. The recent run up of crude oil price to new high of about $140, is likely to be the extent of the rally for some time.

Where does it leave the dollar? There is no one certain answer, but her is one very possible scenario. Inflationary pressures are likely to cause FED to halt its rate cutting policy, maybe even to start gradual rate increases. That is always appealing to Forex traders. Falling oil prices should also benefit the dollar, as record energy costs have been vilified as the single biggest force behind USD weakness (rightly or not). And one more thing, Treasury Secretary Paulson warned earlier this week that he isn't ruling out intervening in currency markets to stabilize the currency.

So, what is the relationship between US Dollar and inflation? Under current market conditions and in light of most recent fundamental and technical development USD might just get a much needed bust from the much dreaded inflation. This relationship is, however, fluid and unstable. Unchecked, inflationary forces can do just the opposite some time down the road- start another Dollar slide.

About the Author

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on www.spectrumforex.com . Spectrum Forex LLC offers numerous services to individual traders. With questions and comments e-mail him at kulej@spectrumforex.com.

Investment Stock Energy

by Andri Faisal

We know the oil price has risen over many times. Today the oil price has reach to $ 140 per barrel whereas the early year oil price is only $ 100. Certainly, the great companies like Exxon Mobil, British Petroleum, Total Oil, and Petrobras have get profit over many times from oil sales. On the other hand, the consumer country has deficit budget. Moreover, the countries, which subsidize the oil price, like my country. They have no choice besides raising the oil price.

Today the oil is essential for the economic. Some country like China and India need oil in large quantity. They need more fuel to run their production machine. Meanwhile the politic condition of Middle East is uncertain. Iran has strong commitment to develop their nuke. They have larger oil reserves in the world. In Iraq, the company also threatened by struggler bomb. They could attack oil pipe or oil field anytime. The oil field damage could barrier the oil production so the oil price could rise over many times. Another producer country like Nigeria has bad politic condition too. The government opposite could attack the foreign oil field because they do not like the foreign oil company.

The change of regime could affect the oil prices too. In Bolivia, The foreign company has to improve the contract or they may out. Evo Morales, Bolivia President, force the oil foreign company to give higher return to Bolivia Government. Evo Morales want the fair cooperation with the oil company. In my country, the opposite government desire to improve the contract. The economic experts say that the oil company is not fair because the government just received little money. If many governments ask the fair cooperation, the oil company will get lower income. Certainly, the stock price will decrease.

We can see that the oil price will rise over many times. You could get high dividend too. When you decide to buy energy stock, you must realize that the stock has overvalued now. Since the oil price rise, other investor has bought the stock before. You should check the fundamental of the stock too. You should notice the potential well and the capacity of production. If the company has developed well, you can choose that stock. On the other hand, you should avoid the company, which have large depletion well. They could not raise their production and the stock will decrease soon.

I believe the blue chip company has large well so you do not have to worry. Alternatively, you can construct portfolio to reduce your risk. You should buy variety company stock.

About the Author

Andri Faisal is a financial consultant and live at Indonesia. My Blog http://www.firstinvestor.blogspot.com

Forex Robots - Why Don't Banks Sack Their Fund Managers As There Track Records Are So Good?

by Kelly Price

I see forex robots that if they worked, would be producing more than the top fund managers but as yet, haven't heard of banks using them and the reason is obvious they don't work - here's why...

Ever seen that track record that looks to good to be true? Well you will see this as well in the small print -read it:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

So there you have it - the forex robot you see hasn't even got a real track record - just paper money, made in hindsight, well that's not real dollars and that's how I judge a trading system.

Anyone can make money knowing all the data and make a track up but of course that's not real life.

I trade and I know a lot of bank dealers and as yet have not seen any of them sacked in favor of any of the forex trading systems I have seen advertised and the reason is simple, paper profits, do not get translated into real time profits.

Today, everyone is looking for easy money from forex trading - but trading is not easy and you wouldn't expect it to be, with the rewards on offer.

Like in any venture, where there are big gains to be made, you need to pay your dues and get the right education.

If of course you do and you get the right forex education, then you can make big long term profits. So my advise is - leave the forex robots with paper track records to the naïve and lazy traders and get yourself a proper forex education, which can set you on the road to long term currency trading success.

If there is big money to be made then its never easy and this doesnt just apply in forex trading, it applies in all money making ventures. Accept this fact, bnow get the right tools and forex education for success.

About the Author

FREE FOREX STARTER PACK 5 X PDFS - DAILY RESEARCH AND MUCH MORE!

For free infopack and free research and more get your 5 x FREE Forex PDFS visit our website at: http://www.learncurrencytradingonline.com

Forex Trading Education - If You Want to Win Understand This Equation For Success

by Kelly Price

Most forex traders lose and the reason they do, is they don't understand the simple equation for forex trading success enclosed in this article. So learn it as part of your forex trading education and get on the road to currency trading success.

Here is the equation and we will discuss its significance in a moment.

Robust Logical System + Confidence in = Discipline to Apply = Forex Trading Success

Now that's nice and simple - but most traders fail to understand it's significance.

Of course, some traders simply get the wrong forex education, try and apply it and lose - here are some common beliefs of losing traders:

- Believing forex day trading or scalping works

- Believing prices move to a scientific formula

- Trying to predict forex prices in advance

- Trusting their money to a forex robot with a simulated, paper track record

Believe any of the above and you will lose at forex trading.

To win you must understand that having a logical robust forex trading system is not enough, you have to apply it with discipline.

This means you must have confidence in the logic, because you are going to have to apply it with discipline and remember - if you can't apply your forex trading system with discipline, you don't have a system!

Most traders hear about the word discipline but have no idea what it means and how important it is and it's a hard trait to acquire.

You need to hold your discipline when your trading system is taking loss and after loss (this happens to even the best traders) and keep executing you're trading system with discipline.

In a famous experiment, Richard Dennis taught a group of traders who had never traded before to trade and he did it in 14 days.

The trading system taught was basically simple (a long term breakout system) but Dennis didn't just tell them to follow it blindly - he taught them to have confidence in the logic, so they would have the discipline to apply it.

The result was stunning - these traders made over $100 million dollars in just 4 years and went down as trading legends.

When Dennis taught the group, he knew the importance of mindset and sticking with a plan through short term losing periods, to make long term profits and you must to.

Discipline is not easy, but if you get the right forex trading education and have the right mindset, you can enjoy forex trading success and you will be doing what over 90% of traders fail to do.

The rewards in forex trading are huge and you can generate a great second or life changing income, you must however be prepared to take your losses to get your profits. All successful traders know this and you must to.

About the Author

FREE FOREX STARTER PACK 5 X PDFS - DAILY RESEARCH AND MUCH MORE!

For free infopack and free research and more get your 5 x FREE Forex PDFS visit our website at: http://www.learncurrencytradingonline.com

Forex Trading Systems

by Julianna Jones

People are making $100,000's every year with Forex trading, why aren't you?

Forex trading systems. You've seen them advertised but where do you start? The logical place to begin is with you. More than likely you want to make as much money as possible, as quickly as possible and with very little work. Most people are like this, and you and I are no different. This is why Forex trading has become so popular. Forex trading is a somewhat complicated process to understand and master, but new Forex trading systemss have made it easy for everyone to master and profit from Forex Trading.A Forex trading system tells you how to trade Forex step by step. These systems are available in many mediums. Be aware that some are far superior than others. You will find that there are seminars, books, e-books as well as autopilot applications available to you. Many inexperienced people prefer an autopilot system which we will look into.

Seminars can be a good source of information but quality can vary. A decent seminar will usually be very expensive. You may or may not be allowed to record the session or take notes. Be sure to research before Paying to attend a seminar.

Books or online e-books can be good for learning about trading and for reference. The downside is that you may or may not lose large sums of money you've invested as you are learning the ropes. This can be very discouraging and many of those who are just starting out give up in the middle of the learning process due to loss of funds.

Finally you may want to consider an autopilot application. Autopilot Forex trading system are extremely popular right now. The best selling ones such as Forex Tracer are designed by expert advisers and elite traders. You can be assured that you are getting a quality program when you purchase one that was designed by the traders themselves. Many elite traders are actually against these types of programs being released to the public.

Forex autopilot applications are proven to be highly effective. They have developed complicated algorithms as well as putting them through rigorous testing before releasing them to the public. Amazingly they require no previous experience and they're extremely easy to use. Programs such as Forex Tracer comes with a function which allows you to use "simulated money". Essentially you are allowed to trade using simulated money to see the potential profit before investing your own money. I'm sure that you can see how powerful this can be.

So, If you are interested in listening to an elite trader, a seminar may be the right choice for you. If you'd like a reference of Forex trading a book or e-book may be your chosen tool. But, if you want to start making money quickly, as most of us do, I suggest purchasing a reputable and proven autopilot application.

For review of top selling Forex trading system that is proven Click Here!

About the Author

People are making $100,000's every year with Forex trading, why aren't you?